Steven Cohen’s Wall Street hedge fund, SAC Capital says it ‘takes responsibility’ for a ‘handful’ of insider traders within its firm.
According to media reports, the company issued a statement revealing that among 3000 traders there were a small number of ‘wrongdoers’.
The US Attorney’s office said the hedge fund giant would pay $1.8 billion (£1.1bn) as they have agreed to plead guilty to insider trading charges.
The settlement comes after a seven-year-long investigation.
Billionaire manager, Steven Cohen, is a high profile figure in US finance with a net-worth of $9bn (£5.6bn). He has not personally been charged with any crime, but the Attorney’s office reported that he has agreed to give up its investment advisory business.
SAC’s statement said: "We never encouraged, promoted or tolerated insider trading."
At its peak, SAC Capital managed about $15bn in assets.